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(Kitco News) – Investors avoided paper gold for most of 2021. However, according to the Royal Mint, investors had an insatiable appetite for physical gold and silver during the final quarter of 2021.
In a press release issued last week, the British Mint said it was seeing record international demand for its precious metals products, with American investors spearheading the search for precious metals.
The Royal Mint said international sales rose 14.4% in the fourth quarter of 2021 compared to the same quarter in 2020. At the same time, purchases of one-ounce Britannia bars and coins by American consumers increased by 96%.
Meanwhile, international silver bullion sales rose 34% in the last quarter of last year.
“Precious metals continue to experience a buying frenzy around the world, with retail buying rising to record levels in markets like Europe and the US, showing that the retail investor is concerned about the progress of the global economic recovery as the pandemic continues,” said Nick Bowkett, Head of Bullion Sales at The Royal Mint, in the press release. “We saw significant demand from international markets as investors sought to offset inflation risks by adding precious metals to their portfolios.”
Germany and America appear to be the leaders in physical gold demand. Last month, the World Gold Council reported that Americans bought a record 117 tons of gold bars last year, a 69% increase compared to 2020.
In Europe, the second year of record demand from Germany has propelled bar sales to 264 tons, up 6% annually, according to the WGC’s 2021 Gold Demand Trends report.
Global demand for gold and bars totaled 1,180 tons last year, up 31%, according to the WGC.
Analysts have said that rising inflationary pressures and growing economic uncertainty make physical gold an attractive asset. The precious metal is also seeing renewed safe-haven demand as geopolitical tensions between the US and Russia heat up.
Gold rose on its recent gains after Friday’s late-day rally. April gold futures were last traded at $1,870 an ounce, up 1.53% on the day.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of the author Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not an invitation to exchange goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article assume no responsibility for any loss and/or damage resulting from the use of this publication.
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